CNN’s Alan Chernoff reported:
The Inspector General found that employees of the Minerals and Management Service in Colorado, responsible for collecting royalties from energy companies that drill on federal land, were having sex and engaging in illegal drug use with oil company employees. And that a supervisor Gregory Smith had sex with two subordinates at MMS and engaged in illegal drug use with at least one of his subordinates. In addition, the investigation found that one-third of the staff of the so-called Revenue-in-kind Office which collects oil from energy companies in lieu of cash, they were receiving improper gifts from these companies.
Now, according to the report, the oil companies included Chevron, Hess and Royal/Dutch Shell. A preliminary reported released in May said changes in the office in colorado that were made to some contracts cost the U.S. government about $4.5 million, but this afternoon, the Director of the Minerals Management Service said, “I don’t see where the American people have been hurt dollar wise.”
Gregory smith a former program director of the office resigned during this investigation. The case was referred to the Department of Justice but it chose not to prosecute him.
Reuters has more details here.
This video is from The Associate Press, broadcast September 10, 2008.